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pure Commission and trading account

Others 250 views 7 replies
I have 2 business one from which i get Commission and another is trading both are not related to each other now the question is what to consider as turnover
Replies (7)
in my opinion, turn over is to be taken separately for different businesses
Turnover is to be calculated on PAN number basis, since you yourself is doing two different business, turnover is to be calculated on PAN basis, which implies turnover of both the business has to be clubbed and taken for income tax and GST.
if my pure comission is 12 lakhs then what will be my income tax
sir, as I said, turnover to be taken based on business wise. for example, if your turnover in trading business is below 2 crores, then you can opt for 44ad in respect of trading business and since commission business is not eligible to opt for 44ad, the total income to be computed under normal provisions
i didnt got sir can you give a example
for example, as you said, you have received total commission of rs. 12 lakhs. suppose, if your total turnover from trading business is more than 2 crores, then you need to maintain books compulsorily for trading business and get it audited. since commission business is exempted from presumptive taxation ,you are required to maintain and audit books in respect of commission business subject to the condition prescribed in 44AA, and 44ab. if your income from commission business exceeds 2.5 lakhs then you are required to maintain separate books of accounts for commission business.
my reply is in respect of income tax act


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